With a domestic leasehold premises in Exeter, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are fewer than 80 years left. Leasehold owners in Exeter with a lease nearing 81 years unexpired should seriously consider extending it without delay. When the lease term has less than eighty years left, under the current statute the freeholder is entitled to calculate and demand a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Exeter with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society |
Engaging our service will provide you increased control over the value of your Exeter leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months James, started to get close to the 80-year threshold with the lease on his one bedroom flat in Exeter. In buying his home 18 years ago, the lease term was of little significance. Luckily, he realised he would soon be paying an escalated premium for a lease extension. James was able to extend his lease just under the wire last March. James and the freeholder via the management company eventually agreed on sum of £6,000 . If he had missed the deadline, the amount would have become more exhorbitant by a minimum £1,050.
In 2009 we were approached by Mr and Mrs. E Turner who, having took over the lease of a garden apartment in Exeter in April 2002. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Identical properties in Exeter with 100 year plus lease were in the region of £181,600. The average amount of ground rent was £55 collected every twelve months. The lease ended in 2078. Given that there were 52 years unexpired we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 plus costs.
Last Spring we were approach by Mr M Roberts , who moved into a recently refurbished apartment in Exeter in June 2011. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparable homes in Exeter with a long lease were worth £290,000. The average ground rent payable was £45 billed every twelve months. The lease concluded in 2098. Given that there were 72 years unexpired we calculated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of expenses.